what will interest rate rises mean to all of us?

It will come to no surprise to you that rates will rise at some point. I think it is safe to say they will not be reducing it again but pushing it up.

I think it will send a clear signal to all of us that things are recovering. So do I want an interest rate rise? Well yes, but not a big one!

Lets just say the Government raises rates by 0.25%. This will trigger all those who have a property for sale or who are thinking of selling to maybe stop being greedy and drop their asking prices.

Currently there is no threat to them. They can sit on their property for sale knowing that it is costing them next to nothing to hold. So as offers come in at 90% of the asking price the vendor can say:

Nope!

95% of asking price? Nope!

99% of asking price? Nope!

I WANT 100% OF THE ASKING PRICE AND THAT’S IT!

Now once they see a interest rate rise of 0.25% it gets them pondering what will interest rates be in 3 months time. And lets just say it takes 3 months for the property transaction to complete what could rates be like then?

You own mind is your worst enemy AS WELL AS the media. News articles will come out hitting the front page which will say something like:

INTEREST RATES

TO BE DOUBLE BY

THE END OF THE YEAR

That should do the trick. Then loads of properties will come on the market, asking prices will drop and the market just maybe might come back. What I mean by that is the volume of transactions will start going up and quickly.

When properties sell this is good. When we have a stand off by vendors and buyers then this is not good.

Rates are expected to rise mid 2010 so we could be in for a wait. In one hand it is great if you have large debts like me but on the other hand it is stifling the market a bit. I never thought I would say this but:

Come on Mervyn, push up the rates a bit!

PS if you want help building a property portfolio get in contact.

Ajay

Posted on: 7th Sep 2009

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	Home Services Property News Free Resources Partners Contact Page you're viewing > Home Page > Property News > Ajay's Blog > what will interest rate rises mean to all of us? It will come to no surprise to you that rates will rise at some point. I think it is safe to say they will not be reducing it again but pushing it up. I think it will send a clear signal to all of us that things are recovering. So do I want an interest rate rise? Well yes, but not a big one! Lets just say the Government raises rates by 0.25%. This will trigger all those who have a property for sale or who are thinking of selling to maybe stop being greedy and drop their asking prices. Currently there is no threat to them. They can sit on their property for sale knowing that it is costing them next to nothing to hold. So as offers come in at 90% of the asking price the vendor can say: Nope! 95% of asking price? Nope! 99% of asking price? Nope! I WANT 100% OF THE ASKING PRICE AND THAT’S IT! Now once they see a interest rate rise of 0.25% it gets them pondering what will interest rates be in 3 months time. And lets just say it takes 3 months for the property transaction to complete what could rates be like then? You own mind is your worst enemy AS WELL AS the media. News articles will come out hitting the front page which will say something like: INTEREST RATES TO BE DOUBLE BY THE END OF THE YEAR That should do the trick. Then loads of properties will come on the market, asking prices will drop and the market just maybe might come back. What I mean by that is the volume of transactions will start going up and quickly. When properties sell this is good. When we have a stand off by vendors and buyers then this is not good. Rates are expected to rise mid 2010 so we could be in for a wait. In one hand it is great if you have large debts like me but on the other hand it is stifling the market a bit. I never thought I would say this but: Come on Mervyn, push up the rates a bit! PS if you want help building a property portfolio get in contact. Ajay Posted on: 7th Sep 2009 Bookmark: del.icio.us digg Furl Facebook Reddit Yahoo Spurl Smarking Simpy Stumbleupon Tell a friend Your name Friends email 2008 2009 January (16) February (7) March (9) April (4) May (4) June (3) July (8) August (7) September (9) Sandwich Options About Lease Options Valuing Options (2) Valuing Options Introduction to Lease Options residential mortgage war has begun! There must be a catch what will interest rate rises mean to all of us? 90% LTV residential mortgage available at 3.89% October (8) November (3) December (4) 2010 2011

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